Theory and measurement of OPEC stability

Journal Article · Tue Jul 01 04:00:00 EDT 1980 · South. Econ. J.; (United States)

DOI:https://doi.org/10.2307/1057060· OSTI ID:5140323

Danielsen, A L

The theory of cartel behavior admits the possibility of either stability or disintegration and provides some guidance in seeking empirical measures of stability. Every cartel must devise some basis for limiting total output and sharing the limited total among participants. Sacrifice ratios provide a framework for appraising the stability of the Organization of Petroleum Exporting Countries (OPEC) to see if it is gaining or losing strength. It appears that OPEC is becoming more cohesive with respect to production shares, capacity, and reserves. The author says the split-level price increase of 1976 was divisive at the time, but has led to greater stability within the ranks of OPEC. He feels that the future of OPEC now appears more secure than at any time since its inception. 18 references, 3 figures, 2 tables.

• Research Organization: Univ. of Georgia, Athens
• OSTI ID: 5140323
• Journal Information: South. Econ. J.; (United States), Journal Name: South. Econ. J.; (United States) Vol. 47:1; ISSN SECJA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
BEHAVIOR
CARTELS
COOPERATION
INTERNATIONAL ORGANIZATIONS
OIL-EXPORTING COUNTRIES
OPEC
STABILITY